Topic: DCA vs Smart DCA, what do you choose? (Read 472 times)

Each person has unique conditions to plan their investment and your case is a good example. We are all different and even with DCA, people can apply it differently. Depends on capital they have, income they have and available time they have for investment.

Even if I am younger, but assume I know that I need to use my money next two or three years, I will try to find best chances to take profit in this cycle because I know that if I hesitate to take profit, I will stuck in a next bear market and I will have to sell my bitcoins at lower price than in this bull run.

Gradually exit in a bull run, if don't plan to invest and hold a long time, is good strategy.

Below are some strategies for newbies, not you as I know you are experienced enough in this market.

• Are you ready for the Bitcoin bull market? What's your plan? Some ideas for you. If only want to take profit in this cycle.
• If want to invest a long time but still need to cash out to have money, check this strategy.
  
  • [ANN] JJG Sustainable Bitcoin Withdrawal Strategy
  • https://bitcoindata.science/withdrawal-strategy

At 67 my dca time frames are shorter.

I purchased from nov 2022 to 2023 nov maybe dec 2023.

I sold some kept most.  a five year dca with a five year hodl is not realistic at my age.  as i want some life to live now since I am 67. I have no one to give when I die. So spending is part of what I do.

Dollar-Cost Averaging: Pros and Cons
https://dcabtc.com/
https://costavg.com/

I will be happy to learn about the DCA method if anyone will be so kind to share me any link that can help. The link in the first post talks about Smart DCA which is also clear in the chart. I would have loved to also learn about DCA to be able to compare as I start my bitcoin investment. I have read through many comments but I have not seen anyone that explained the DCA aspect.

I must say that I like the way you balance things here as you speak for the possible cons and pros in your opinion and still arrive at your conclusion which also agrees with mine. You see, these days, a lot of people are just coming up with their ideas and are labelling them what they like. But one thing that is sure is that it is better we keep it simple and not complicate things for ourselves even as the term Smart DCA is confusing due to different meanings of people to it. The subject of smart DCA is still new and it is mainly about how we divest and not invest by some people where they divest some parts on market depreciation to purchase it back. A way we reduce our risk in the bearish mode, which is not a traditional way of investment through the DCA approach. This is also different with some people as they believe it is a simple way to invest only in a smart way.

You know what? To avoid issues, I stick with my standard DCA approach. The main reason why I like the DCA approach is that you average your potential gains and risks, and as far as I am concerned, it is only greed that can make people do otherwise because they want more. It's greed in the sense that you want to outsmart the market more, but in the process, you can cheat yourself or even get confused. So, why not stick to the DCA way that has been tested for centuries to be working fine if used correctly? Many of the recent additions/modifications will only put more investors in trouble if care is not taken. The market is dynamic and tricky, so what you think works now may not work later. However, by using the DCA strictly, you have effectively averaged the risks and the potential benefits. Also, by shunning the greed and side attractions like the smart DCA makes you a focused and disciplined investor in my opinion.

what you both may not realise is in tradfi. people dont just deposit their pre-tax income into a stock/asset at whatever the price is at deposit time
instead they deposit their income into a portfolio.. that is managed by a portfolio manager, and that manager chooses the asset and time to invest in
whereby the manager does #buy-low-sell-high practices

so in tradfi DCA is not just buy an asset at whatever price it is at deposit time

however in crypto we dont beleive in using portfolio managers so we need to become our own portfolio managers, which means actually getting smarter and choosing to invest at slightly better options/times compared to just random buys at deposit receipt

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the only reason social media are presenting DCA in crypto as "always be buying even on the high" is because those wanting to sell high to grab FIAT profit. always want there to be naive buyers still buying at the high

I see it depends on the goals and financial strength of DCA itself.
whether beginners or old, traditional DCA is used more to accumulate bitcoins in a portfolio on a regular basis, not for the purpose of earning more profits. So it is very appropriate to use traditional DCA because you don't need to be confused about market conditions, see potential declines, read good and bad news that can affect the price of bitcoin, and so on. we just need to buy bitcoin regularly every week or month.

In my opinion, Smart DCA is the opposite, or more precisely, it is more about accumulating bitcoin using trading techniques. You will definitely read more and see market conditions. by using this method you should also be able to allocate more funds. because a decline can occur at any time. It could also be that when the price is falling and we believe now is the right time to buy, tomorrow or the day after tomorrow the price will fall again. of course it will make us buy some more bitcoins.

Yes. A real effort you have made and it is quite time-consuming of course, but we have all lived our respective roles. I don't know what we are struggling with, but our goal here is certainly the same. That is to the point of finally making a lot of money as you wrote.

well he only went back to 2022.


I did two moves other than mining from 2022 oct.

I did 1 year dca weekly and I did buy the dip or smart buys


so 52x dca and four dip buys about 5 or 6 x each or 24x buy the dip.


the buy the dip were all under 20k.

the 52 weeks of dca average was about 26k

both made solid money.

But they were for a years time

It is still DCA. It is similar to your practice with any technical indicator for your trading, you can customize many parameters in a same indicator and still can not change that indicator to a new one.

DCA is still flexible and your example is true. Sometimes with some people, they can not have available money for investment regularly on exactly weekly or monthly basis and they don't even have to double their input money if they skip a last month (don't have money for DCA last month). They can change from weekly to monthly then back to weekly, depends on their financial status and available money for investment.

I agree that timing the market is not actually good but if you know what you are doing, you can do it and it is still DCA but it is applicable for more experienced and skillful investors.

For newbies, yes, Traditional DCA is best.

There are various indicators like this but it's hard to find trustworthty

When it comes to DCA then i dont really mind much about being smart or not because each one of us would really be having that kind of decisions and financial capabilities on which there are ones who could really be able to have DCA in weekly basis or monthly basis which it would be depending on the availability of the funds you do have since not all would really be that rich or that having the money whenever the market would be dropping. This is why it would really be best that you should really know on what you are doing when it comes to DCA which is of course we would really be pertaining about low prices or when market dumps.

Dont know about those smart DCA and ordinary DCA on which in overall idea it is really just that the same in overall idea or on how its been done. There are really just those people who
are really not having that kind of capacity on doing so or on how deep is their pockets on the time that the market corrects. We do know that when it comes to buying opportunity
then it would really be something that could be fixed out.

If you modify DCA strategy, it is not DCA anymore. It might be better or worse than DCA’ing but it ain’t no DCA’ing. DCA means buying daily weekly or monthly with the same amount. Of course most people can’t do it properly and it is because sometimes they buy $1000 worth of btc and sometimes a bit more or less. However that’s still considered DCA ing as long as they keep buying. When you try to time your buys, then you are only trying to time the markets. When try to time the markets, the price is the time. If you are that smart, sure go time the markets. DCA is for the people who don’t know how to do it.

Traditional (classic) DCA is better for most of us. We don't have to be FOMO, panic, fearful in the market with price changes either up or down.

This is main use case of Traditional (Classic) DCA but with Smart DCA, we will more likely to be FOMO if waiting too long to get a signal from Smart DCA indicator.

There is nothing perfect for everyone as DCA can be better for me but not better for you and oppositely. Indicator like Smart DCA is only one of factor in investment and if we can not control other things, ourselves, Smart DCA strategy can not help.

Weekly or monthly, it would be nice to implement that in DCA, and I agree with that because that's what I've been doing so far. Now, when every month comes, I'm accumulating $100  in cryptocurrency that I'm saving.

I've been doing it for about 9 months since I started it last year, so what I'm doing seems normal to me, so it's also good to make it a habit because, uptrend or downtrend, we can do it honestly speaking.

For non-traders the traditional DCA is better. For veteran traders who can feel the market (a majority of the time) it may be better to DCA alternatively. I for example think DCAing at established support levels is an improvement over regular DCA that does not take dips into consideration. But that only goes for really good traders who watch the market all the time. A dip can reverse for no reason and they need to act fast during such reversals in order not to lose any potential Bitcoin.

Traditional DCA is way less of a headache and you don't need to have your eyes on the market all the time.

I am currently sticking to the traditional DCA since for me it is the most safe and no stress strategy to acquire Bitcoins. The only problem here is the capital for me since I have no stable job right now aside from my signature campaign rewards which also serves as a weekly DCA. So far I am doing great with this strategy and I think I am sticking on this onwards.

You know what they key thing about DCA is? It can be used by anyone, anytime. No time wasting, no thinking, no analysis. That's why it's perfect for people like me.

Smart DCA just sounds like a version of trading analysis, if you get it wrong you won't lose money but you'll lose time and experience the same frustrations of traders making wrong calls.

Hm... I think I'd choose a mix, actually. During the regular or bear market time, I think regular DCA is totally fine. It's simple, it saves time and nerves because you don't actually have to worry when you're buying your coins, and it allows to effectively accumulate BTC. But perhaps during the rapid bull market, this Smart DCA can be more helpful. Maybe it's not worth it, but it kind of makes sense. When I say 'rapid bull market', I'm trying to make a distinction between, say, all of 2023 and February-March of 2024. In 2023, the price was growing consistently but gradually, and I think regular DCA is okay for such times. But in times of fast growth, like in 2024, perhaps smart DCA is worth looking at.

I don't care which one is best, DCA is DCA to me.

I only DCA when it's convenient for me, it's not a do-or-die  thing that I have to get over with, I am human and I need to cherish every moment too, sometimes I DCA every week and sometimes once a month, it depends on the situation at present, I have responsibilities e.g bills and other.

Buy when there is a dip in the market and wait for your next payout, even if I get my next payout and the assets I want to buy have skyrocketed I won't be buying for that week, I will wait for a retracement or correction if it doesn't happen then I move on, but in the case of Bitcoin I always DCA at whatever the price is at.

Remember, it is still DCA, do not inconvenient yourself about it, invest money you won't need for many months to come, and if you can't afford to DCA in a month it's also fine, it should be convenient, it's why its called Dollar Cost Averaging.